Assuming this is actually a useful and powerful addition to a programmer's quiver (which it looks like it will be if not already is). Then the tying it to Visual Studio is a variation of Microsoft's "Embrace and Extend" philosophy but for Programmers and open source in general.
It uses Open Source as its input but, as far as I can tell (and I would be pleasantly surprised if I was wrong), CoPilot itself is not Open Source.
It is also tied to Visual Studio, making Visual Studio, a Microsoft Product and on its way to monopoly position even more up the power law curve to monopoly status.
This would be much more interesting and less concerning if CoPilot was Open Source and designed to plug in to other Editors / IDEs like via lsp or something similar.
VSCode has telemetry, the extension market place can't be used by non-microsoft products, VSCode is not open source (only VSCodium is), many of the MS extension are not open source (like live collaboration), etc.
VSCode followed the classic big tech recipe : 1) make it open source to look like the good guys & get adoption and contributions 2) close-source many key components & add spyware.
It uses Open Source as its input but, as far as I can tell (and I would be pleasantly surprised if I was wrong), CoPilot itself is not Open Source.
It is also tied to Visual Studio, making Visual Studio, a Microsoft Product and on its way to monopoly position even more up the power law curve to monopoly status.
This would be much more interesting and less concerning if CoPilot was Open Source and designed to plug in to other Editors / IDEs like via lsp or something similar.